Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5056713 | Economic Systems | 2007 | 9 Pages |
Abstract
Debt overhang may impede a country's investment and growth. Accordingly, the World Bank initiated debt relief programs. However, doubts have been raised regarding the empirical validity of the debt overhang hypothesis. We employ panel data for testing the existence of debt overhang for Latin American and Asian borrowers. A variety of dynamic panel data econometric estimations as well as dynamic and system GMM estimations are conducted. Our results indicate that debt overhang impeded growth in Latin American economies severely and the impact was moderately negative in the Asian region.
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Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Swapan Sen, Krishna M. Kasibhatla, David B. Stewart,